By Doug Cameron
Lockheed Martin Corp. said Tuesday that it will partner with
Bombardier Inc. to supply the Pentagon with new surveillance
planes, pitting the Canadian firm against rival business-jet maker
Gulfstream for a share of a contract valued at around $4.3
billion.
Jets from Bombardier and the Gulfstream Aerospace unit of
General Dynamics Inc. are being considered to replace the aging
fleet of larger Boeing 707 planes that are becoming too costly to
fly in their role of monitoring forces on the ground.
Bids on the surveillance plane contract, known as JSTARS, are
expected later this year, with a deal due to be awarded in
2016.
Lockheed announced at the Paris Air Show that it had selected
Bombardier's Global business jet for its bid, in partnership with
Raytheon Co. The Pentagon in March said it would permit foreign
companies in the contest, allowing Lockheed to select the Canadian
company.
Northrop Grumman Corp., which converted the 18 Boeing 707s now
in service, last week that it would offer a version of the
Gulfstream G550 business jet, with L-3 Communications Holdings Inc.
also joining its bid.
Boeing is expected to offer a version of its 737-700 passenger
jet, building on its successful sale of a version of the
single-aisle plane to the U.S. Navy for maritime surveillance. The
company has said a larger jet is needed because surveillance
flights can last many hours.
The two business-jet makers have said they would use special
cabin systems like that used on the Boeing 787 Dreamliner to
improve air quality and pressure and help crews stay more
rested.
The U.S. military has made limited use of business jets, mainly
for special operations, but industry executives said their
deployment by Israel and Japan had heightened the Pentagon's
interest.
The replacement planes and a planned new fighter jet trainer are
the initial focus of efforts by Air Force Secretary Deborah Lee
James to end the spiraling cost of new military aircraft, turning
to existing commercial technology that can be easily converted and
cheap to fly.
"You're going to see us continue to elevate affordability in new
programs, as well as exportability," Ms. James said in a speech
last year that outlined planned changes to its acquisition
system.
Write to Doug Cameron at doug.cameron@wsj.com
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